Abstract：Objective：To observe the effect of modified Shenqi Dihuang Decoction on kidney function and microcirculation in patients with early diabetic nephropathy. Methods：A total of 114 cases of patients with early diabetic nephropathy were selected as the study subjects，and divided into the control group and the study group according to the random number table method，with 57 cases in each group. The control group was given routine symptomatic treatment， and the study group was additionally treated with modified Shenqi Dihuang Decoction based on the treatment of the control group. The clinical effects in the two groups were evaluated. Before and after treatment， the levels of nitric oxide(NO)， thromboxane B2 (TX- B2)，intercellular adhesion molecule- 1(ICAM- 1)，serum creatinine(SCr)，blood urea nitrogen(BUN)， red cell aggregation， fibrinogen， plasma viscosity， hemoglobin A1c(HbA1c) and 8- Isoprostaglandin F2 alpha(8-isoPGF2α) in the two groups were compared. Results：The total effective rate was 96.49% in the study group，higher than that of 80.70% in the control group(P＜0.05). After treatment，the levels of 8- isoPGF2α，ICAM-1，BUN，SCr，HbA1c and TX-B2 in the two groups were decreased when compared with those before treatment(P＜0.05)，and the levels of 8-isoPGF2α，ICAM-1，BUN，SCr，HbA1c and TX- B2 in the study group were lower than those in the control group(P＜0.05). After treatment， the NO levels in the two groups were increased when compared with those before treatment(P＜0.05)， and the NO level in the study group was higher than that in the control group(P＜0.05). After treatment，the red cell aggregation，plasma viscosity and fibrinogen in the two groups were decreased when compared with those before treatment(P＜0.05)，and the red cell aggregation，plasma viscosity and fibrinogen in the study group were lower than those in the control group(P＜0.05). Conclusion：Modified Shenqi Dihuang Decoction has a significant curative effect in treating patients with early diabetic nephropathy， and can reduce oxidative stress and inflammatory responses， improve kidney function and hemorrheology， enhance vascular endothelial function，and promote microcirculation.